Dassault Systèmes Closes 2007 Upbeat About Coming Challenges

Dassault Systèmes reported a mixed bag of growth for the
fourth quarter of 2007, leading to total revenue rising 10% in
the quarter, measured year-over-year in constant currencies. For
the full year, total revenue was up 15% in constant currencies.
As previously reported, Dassault has announced major changes in
its product line that it anticipates will drive additional
growth opportunities. We think these initiatives, while
consistent with Dassault's "we drive the vision” attitude, will
be relatively slow to deliver the gains it seeks.

Total revenue in the fourth quarter of 2007 (ending December
31, 2007) was €363 million ($529 million), up 3.9% year-over.
Software revenue in the period was €308 million ($448.8
million), up 8%. Services revenue for the quarter was €55
million ($80.2 million).

(Click for larger view)

CATIA revenue in the quarter was €145.2 million ($211.6
million) year-over, below expectations of several Wall Street
analysts who track Dassault. We would remind them that a year
ago Dassault was still buoyed by strong CATIA sales to Airbus
and suppliers, in a final echo of the A380 debacle. ENOVIA (PLM)
division revenues were €50.3 million ($73.3 million), up 12%.
“Mainstream 3D” revenues (SolidWorks and Cosmos) was €67 million
($97.6 million), up 9%. SolidWorks new seat growth for the
quarter was 12%.

Key Results for the Full Year

For the full 2007 fiscal year (ended December 31, 2007),
total revenue was €1.25 billion ($1.82 billion), up 9% from
2006. Software revenue was €1.06 billion ($1.54 billion), up
10%, of which 60% was recurring revenue. Services revenue for
the year was €195.5 million ($284.9 million), essentially flat
when compared to 2006 services revenue of €194.7 million ($283.7
million).